Two luxury residential sites fetch HK$2.9b

Prices fall roughly in line with forecasts as developers bullish on high-end home market

PUBLISHED : Thursday, 10 January, 2013, 12:00am
UPDATED : Thursday, 10 January, 2013, 4:19am

Two residential sites, in Sai Kung and Sha Tin, were sold for a total of more than HK$2.9 billion, roughly in line with market expectations.

The Lands Department announced yesterday that the Sha Tin site, in Kau To Shan, was sold to Wing Tai Properties for HK$1.47 billion, or HK$10,302 per square foot. The market had expected a price of up to HK$1.44 billion.

"The price could be more than the market expected because the site is located at a higher level than others in the area. It is also smaller, so more developers could afford the investment cost. Developers would bid higher amid the keen competition," Alvin Lam Tze-pun, a director at Midland Surveyors, said.

The site covers 92,463 square foot and could yield a total gross floor area of 142,386 sqft.

The Sai Kung plot was sold to Sino Land for HK$1.46 billion, or HK$5,840 per square foot, within market forecasts of between HK$1 billion and HK$2.24 billion. It attracted 14 bidders last Friday.

"The sites are in the traditional luxury residential areas. The tender results reflect developers' confidence in the luxury market," Lam said.

The 166,089 sqft site in Sai Kung could provide a total gross floor area of 249,133 sqft. Under the terms of the tender, the project must supply at least 240 flats.

In the primary market, Sun Hung Kai Properties raised the asking prices for the second batch of flats at The Wings II in Tseung Kwan O by 3 to 5 per cent after the project received a positive response on Tuesday, the first day of sales.

Deputy managing director Victor Lui Ting said yesterday that the first batch of 50 flats had been sold, generating more than HK$600 million for the company. The developer will start selling the second batch of 50 flats on Saturday.

"The average price in terms of gross floor area is HK$11,018 per square foot. We have raised the prices slightly," Lui said.

The healthy sales at The Wings II sent shares in SHKP up 2.4 per cent yesterday to close at HK$123.50, the highest in a year.

Meanwhile, Cheung Kong said its 286-flat One West Kowloon in Cheung Sha Wan had sold more than 110 flats at an average of HK$11 million, generating about HK$1.2 billion in revenue.